1、SPORTS TECHNEW YORK | LONDON | PARIS | MUNICH | SAN FRANCISCO | LOS ANGELESJANUARY 20222021 YEAR IN REVIEW & 2022 PREDICTIONSLANDMARK 2021 DEAL ACTIVITY2WITH $20B DISCLOSED IN M&A TRANSACTIONS AND $9B DISCLOSED FUNDRAISINGS IN 2021 YTDM&A Activity in the Sports Tech sector has experienced sizeable g

2、rowth since 2018 and landmark dealmaking in 2021 as the sector continues to show resilience through the global economic shocks of the pandemic, reaching record high transaction value ($19.68B) and deal count (141) in 2021. The high number of undisclosed transactions mean an entirely accurate view of

3、 total deal size is difficult to ascertain. That said, it is clear the sector is beginning to mature with landmark deals such as CVCs $2.90B acquisition of Razer. 2021 also marked an outstanding year for fundraising activity, reaching an all-time high transaction value ($8.75B) and deal count (342).

4、 Underpinned by large fundraises such as Epic Games ($1B), Dream11 ($840M) and Sorare ($680M).The anticipated growth in the value of media rights and sponsorship deals will drive M&A activity in the sector, and we expect esports and betting to be the highest growth subsector in terms of deal volume.

5、 Growth equity providers will increasingly fund esports and betting businesses that have proven business models and clear paths to profitability, but require capital to scale.The year saw multiple IPOs and SPACs such as Draft kings, Genius Sports and Sports Radar. We predict this activity to continu

6、e into 2022 with established market players such as Eleven Sports, Fanatics and Deltatre and as the Sports Tech market continues to mature more players will consider the IPO route.Sources: Pitchbook, Drake Star Analysis(1) Sports Tech criteria includes; Esports, Fantasy Gaming, Wearables, Performanc

7、e Enhancement, Sports Media, Sports Software$202.47M$395.87M$2.90B$22.6B32438720202021Capital InvestedDeal CountSports Tech M&A1Sports Tech Funding1$2.87B$930.41M$7.70B$8.9B24928421920202021Capital InvestedDeal CountDrake Star Securities LLC is regulated by FINRA and is a membe

8、r of SIPC. All securities in the UK, are transacted through Drake Star UK Limited (FRN 942020) an appointed representative of Kession Capital Ltd (FRN 582160) which is authorised and regulated by the Financial Conduct ATOP 10 DISCLOSED M&A TRANSACTIONS32021COMPANYCOUNTRYSUBSECTORDEAL AMOUNTACQUIRERA

9、CQUIRER COUNTRYDATEEsports$4.0bnMar-21Sports Betting$3.7bnOct-21Gaming$2.9bnNov-21Gaming & Sports Betting$2.2bnDec-21Digital Media$2.0bnOct-21Esports & Sports Betting$1.6bnAug-21Esports$1.3bnOct-21Sports Betting$1.2bnSep-21Online Betting$547mNov-21Esports$436mMar-21151 DEALS FOR A TOTAL OF $22.6BNNo

10、te: Month to month discrepancy due to Pitchbook backdating and re-Drake Star Securities LLC is regulated by FINRA and is a member of SIPC. All securities in the UK, are transacted through Drake Star UK Limited (FRN 942020) an appointed representative of Kession Capital Ltd (FRN 582160) which is auth

11、orised and regulated by the Financial Conduct ATOP 10 DISCLOSED FUNDING ROUNDS42021Note: Month to month discrepancy due to Pitchbook backdating and re-categorisations351 DEALS FOR A TOTAL OF $8.9BNCOMPANYSUBSECTORCOUNTRYDEAL AMOUNTLEAD INVESTOR(S)DATEEsports$1bnLater Stage VCSony, Park West Asset Ma

12、nagement, KKRApr-21Fantasy Sports$840mLater Stage VCFalcon Edge Capital, DST Global, D1 Capital Partners, RedBird Capital Partners, Tiger GlobalNov-21Fantasy Sports$680mSeries BSoftbankSep-21Venue Software$500m PE GrowthHinge Capital, Sixth Street Partners, Vista Equity PartnersOct-21Fantasy Sports$

13、400mSecondaryTCV, D1 Capital, Falcon Edge CapitalMar-21Coaching & Preparation$360mSeries FSoftbank Group, Vision FundJan-21B2C Commerce$337mPE GrowthSoftbank Group, Vision FundAug-21B2C Commerce$320mPE GrowthMLB Advanced Media, Silver Lake Management, Thrive CapitalMar-21Fan Engagement$305mLater Sta

14、ge VCCoatue ManagementMar-21Athlete Performance$300mSeries BAll-Stars InvestmentsApr-Drake Star Securities LLC is regulated by FINRA and is a member of SIPC. All securities in the UK, are transacted through Drake Star UK Limited (FRN 942020) an appointed representative of Kession Capital Ltd (FRN 58

15、2160) which is authorised and regulated by the Financial Conduct A#1 AN INCREASINGLY CONNECTED FAN5THE FAN ECOSYSTEM CONTINUES TO DEMAND A PERSONALISED OMNICHANNEL EXPERIENCERAPID GROWTHHistorically, as there was no national broadcasting to catch up on games, sport teams started by only having a loc

16、al fanbase and would only rely on newspapers and the radio. Now, due to the evolution in internet, smartphones and social media, fans are hyper-digitalised, globalised and fully connected. The fan ecosystem demands an omni-channel experience to fulfil their need for a more personalised experience. T

17、his has created the opportunity for industry players to increase the monetisation throughout the fans life cycle.We expect content providers to expand their service offerings and enable fans to feel closer to the action, such as behind-the-scene clips and interviews, that are in both short and long-

18、form and are always-on. As keeping up with the global connected fan not only requires new technologies and distribution models but also new forms of content, delivered at the right time and in the right format.Social media will serve as an OTT platform and a key enabler to attract and retain support

19、ers. Social media platforms have allowed amplified communication between clubs and their fans, and we expect that they will continue to rapidly grow as the fundamental medium for the broader sports industry to connect and engage with supporters globally. As expected, 2021 has seen the emergence of b

20、roadcasters and OTT platforms bringing new forms of content to enable fans to feel closer to the action with examples like Amazons “All or Nothing series as well as Drive to Survive by Netflix. Looking ahead, we expect the need to sustain viewership and enhance fan engagement to drive activity in th

21、e Sports Tech space, as content providers look to adjust the requirements of the connected fan and monetise accordingly. Our 2021 predictions will only be enhanced in the era of COVID, lockdowns and isolation.TREND OVERVIEWTREND OVERVIEWTHE DRAKE VIEW | 2021 THE DRAKE VIEW | 2021 PREDICTIONPREDICTIO

22、NTHE DRAKE VIEW | 2022 THE DRAKE VIEW | 2022 PREDICTIONPREDICTIONSources: Pitchbook, Drake Star Analysis(1) Sports Tech criteria includes; Esports, Fantasy Gaming, Wearables, Performance Enhancement, Sports Media, Sports SDrake Star Securities LLC is regulated by FINRA and is a member of SIPC. All s

23、ecurities in the UK, are transacted through Drake Star UK Limited (FRN 942020) an appointed representative of Kession Capital Ltd (FRN 582160) which is authorised and regulated by the Financial Conduct A#2 ATHLETES AS PUBLISHERS & MEDIA BRANDS6FANS SEEK A DIRECT DIALOGUE WITH ATHLETES AND TEAMS NOW

24、MORE THAN EVERRAPID GROWTHWe expect the sports media publishing landscape to be turned on its head, as we rapidly enter a new era of the influencer athlete and their power to enhance fan engagement and ultimately deepening fan loyalty. As such, platforms will partner directly with athletes and teams

25、, handling and informing all matters related to social and digital media.We expected disruption to continue from the emergence of new players driven by new technologies and their ability to provide further opportunities for monetisation.In the midst of COVID, with the world of sport on pause, person

26、al relationships with fans were more important than ever. As expected, digital content platforms that enable players and teams to post content giving fans constant insight and growing their loyalty, have disrupted the traditional social media landscape. Driving M&A activity in the space, such as One

27、footballs acquisition of DugOut.Looking ahead, we expect “ATGC” (Athletes and Teams Generated Content) to continue gaining importance, driving the emergence of agencies helping leagues and teams in their dialogues with fans. Driven by the challenges that arise when leveraging an omni-channel approac

28、h with consistent messaging. Furthermore, we expect competition and overlapping business models to drive a degree of consolidation, both within the space and between other platforms (e.g. with pureplay OTT providers).Traditionally, the marketability of a player was tied to their performance on the s

29、port and the value their name gave to ticket sales. However, with the rise in the connected fan, athletes have a much greater stake in their own intellectual property. Fans seek a direct dialogue with athletes, encouraging them to adopt a role as publishers and media brands themselves by taking acti

30、ve ownership of the sports media value chain. Social media has been the go-to platform for athletes to successfully build their brand with the most characteristic example being Cristiano Ronaldo who holds the most followed account and earns more than $40M/year on Instagram.TREND OVERVIEWTREND OVERVI

31、EWTHE DRAKE VIEW | 2021 THE DRAKE VIEW | 2021 PREDICTIONPREDICTIONTHE DRAKE VIEW | 2022 THE DRAKE VIEW | 2022 PREDICTIONPREDICTIONSource: Global Web Index, Mordor Intelligence, Drake Star Sports Technology Report 2020Drake Star Securities LLC is regulated by FINRA and is a member of SIPC. All securi

32、ties in the UK, are transacted through Drake Star UK Limited (FRN 942020) an appointed representative of Kession Capital Ltd (FRN 582160) which is authorised and regulated by the Financial Conduct A#3 THE RISE OF OTT7SHIFTS IN CONSUMPTION INCREASINGLY UNDERPIN THE GROWTH OF OTT IN THE SPORTS INDUSTR

33、Y RAPID GROWTHWith most tech giants well positioned in the OTT space, we expected that they would drive fierce competition for sports media rights as they gain a wider audience with a more customer focused model. OTTs, compared to TV broadcasting, can capture accurate fan data, in real-time, enablin

34、g rights holders to gain a deeper understanding of increasingly complex audiences. We expected opportunities for further value creation to drive activity in the Sports Tech space, largely through content segregation, expansion beyond live offerings to maximise the lifetime value of live events and b

35、uild that all-important fan equity.As tech giants and traditional broadcasters are under increasing pressure to drive growth and live sports remains one of the best customer acquisition strategies, we predict they will continue to expand into the OTT space. Already, Amazon finalised a $100bn deal fo

36、r exclusive rights to “Thursday Night Football” beginning in 2022 while Apple is allegedly in talks with the NFL for the “Sunday Night Football” exclusive rights to be part of AppleTV+. We predict Netflix is soon to follow, having revealed that management views its biggest threat to be esports game

37、Fortnite (mainly watched OTT), rather than HBO. The growth of OTT is subsequently driving a new market for cloud-powered content distribution tools such as video clipping, to post real-time content on social media. We expect OTT and the connected fan to drive a continuation of innovation and deal ac

38、tivity around Sports Tech digital media.Looking ahead, this new era of competition will likely drive up the value of sports media rights, however, in the long-run we expect that the extent to which media rights will increase in value is largely dependent on the ability of these platforms to monetise

39、 users and their ability to distribute scale. In the past, under the traditional media rights model fans were at the mercy of broadcasters. Now, OTT platforms provide viewers with a more user-friendly, content rich sports streaming solution, by offering highly tailored digital content, diversified a

40、cross different formats and using more flexible pricing mechanisms.TREND OVERVIEWTREND OVERVIEWTHE DRAKE VIEW | 2021 THE DRAKE VIEW | 2021 PREDICTIONPREDICTIONTHE DRAKE VIEW | 2022 THE DRAKE VIEW | 2022 PREDICTIONPREDICTIONSource: Drake Star Sports Technology Report Drake Star Securities LLC is regu

41、lated by FINRA and is a member of SIPC. All securities in the UK, are transacted through Drake Star UK Limited (FRN 942020) an appointed representative of Kession Capital Ltd (FRN 582160) which is authorised and regulated by the Financial Conduct A#4 DATA & ANALYTICS BECOME INDISPENSABLE 8AND SPARKS

42、 PIVOTAL GROWTH FOR THE SPORTS TECH ECOSYSTEMRAPID GROWTHWith emergence of advanced computing capabilities such as cloud-based software, big data applications and AI, leagues, teams, broadcasters and sponsors are utilising data to enhance decision-making, performance and ultimately profitability. Th

43、e application of data & analytics is most disruptive in three areas: Fan Engagement, Team & Athlete Performance and Sponsorship & Advertising.We expected Data & Analytics to propel fan engagement across the entire sports ecosystem by enabling more bespoke and informative content delivered through an

44、 abundance of touchpoints directly feeding from the end fan. As Data & Analytics fundamentally underpin the performance of teams and athletes, both on and off the field at the professional level, we predicted that as AI and other machine learning technologies further develop, businesses and business

45、 models will emerge to address growing demands for more insights. Coaching staff can maximise individual athlete preparation, performance and recovery, as well as manage, recruit and train teams in a manner that leaves biology and statistics with little left to offer. In terms of broader business ma

46、nagement, embracing data has become a basic requirement to any club seeking to operate proficiently or grow at scale. A significant gap existed between what brands needed to reach their target audience effectively and quantifiably, and what digital assets rights-holders offered in sponsorship packag

47、es. Brands are no longer interested in solely raising profiles, but seek to create deeper engagements with fans, largely through the application of Data & Analytics. As a result, we are seeing the evolution of sports sponsorships into Partnerships. The provision of data is driving this evolution and

48、 will continue to propel developments in Sponsorships & Advertising across the wider Sports Tech industry going forward.As expected, 2021 has seen the emergence of broadcasters and OTT platforms bringing new forms of content to enable fans to feel closer to the action with examples like Amazons ”All

49、 or Nothing series as well as Drive to Survive by Netflix. Looking ahead, we expect the need to sustain viewership and enhance fan engagement to drive activity in the Sports Tech space, as content providers look to adjust the requirements of the connected fan and monetise accordingly. Our 2021 predi

50、ctions will only be enhanced in the era of COVID, lockdowns and isolation.TREND OVERVIEWTREND OVERVIEWTHE DRAKE VIEW | 2021 PREDICTIONTHE DRAKE VIEW | 2021 PREDICTIONTHE DRAKE VIEW | 2022 THE DRAKE VIEW | 2022 PREDICTIONPREDICTIONSource: Global Web Index, Mordor Intelligence, Drake Star Sports Techn

51、ology Report Drake Star Securities LLC is regulated by FINRA and is a member of SIPC. All securities in the UK, are transacted through Drake Star UK Limited (FRN 942020) an appointed representative of Kession Capital Ltd (FRN 582160) which is authorised and regulated by the Financial Conduct A#5 ESP

52、ORTS & FANTASY SPORT GAIN POPULARITY 9WITH FURTHER ROOM FOR GROWTH AS THE MARKET REMAINS FRAGMENTED RAPID GROWTHEsports is dramatically below benchmark in monetisation relative to established sports leagues, with revenue measuring in at $6 per core fan compared with $90 in the MLB and NHL. What is c

53、lear is that there will be two tailwinds driving revenue growth in the space: growing monetisation per viewer and a growing global viewership base, as the sport increasingly hits mainstream viewership and attracts the hefty budgets of flagship broadcasters and sponsors.The mismatch between the size

54、of the esports industry ($1.1bn in 2021) and its current (474m esport viewers) and potential viewership base (3.2bn gamers globally) underpins the immense growth potential in the space. Media rights & sponsorship is expected to drive the revenue growth, with media rights owners and brands increasing

55、ly entering the space given the highly attractive viewership dynamics.We expect fantasy sport to be a feature in the Sports Tech ecosystem, partnering with OTT platforms to deliver the ultimate, full-suite fan entertainment package. This is because, in a new ecosystem where loyalty is increasingly h

56、ard to establish, Fantasy Sports are valuable tools, enabling leagues and teams to have a direct dialogue and monetise their fan base. Not only does it allow leagues and teams to tap into younger generations and find new fans, but it creates a more loyal fan base, often helping to convert casual fan

57、s into more dedicated fans. Fans are also driven to watch a broader range of games within their respective fantasy sport. Since players can generally only select a couple of players from the same team when drawing their league, fans are incentivised to support more teams.As esports remains a fragmen

58、ted market with no clear leader in sight, large brands are investing resources in the space to gain critical scale. Red Bull invested in an esports training camp and Coca-Cola set up its own esports-dedicated Twitter channel. Sports teams, leagues and federations are also rapidly taking stock, with

59、multiple partnerships and franchises launched in parallel to traditional sports operations. The NBA 2K League, the esports version of the traditional NBA league, has 21 teams on board. Numerous European football clubs have established FIFA esports franchises too, including Manchester City, Ajax, Spo

60、rting Lisbon and FC Schalke. Going further, this trend will accelerate in the Sports Tech space as esports becomes a core strategy for all major traditional sports franchises.As esports business models remain complicated and struggle to create a sustainable palette for profitability we believe altho

61、ugh esports will continue to gain momentum, we will not see institutional VC or PE firms investing until the tail-end of 2022 or 2023. TREND OVERVIEWTREND OVERVIEWTHE DRAKE VIEW | 2021 PREDICTIONTHE DRAKE VIEW | 2021 PREDICTIONTHE DRAKE VIEW | 2022 THE DRAKE VIEW | 2022 PREDICTIONPREDICTIONSource: S

62、tatista, Goldman Sachs Equity Research, Drake Star Sports Technology Report Drake Star Securities LLC is regulated by FINRA and is a member of SIPC. All securities in the UK, are transacted through Drake Star UK Limited (FRN 942020) an appointed representative of Kession Capital Ltd (FRN 582160) whi

63、ch is authorised and regulated by the Financial Conduct A#6 MOVING TO A HOLISTIC EXPERIENCE MODEL 10FROM SMART STADIUM TO SMART PLATFORMSLOW GROWTHWith todays sophisticated home entertainment systems and the latest stats and updates available in real-time on mobile devices, new incentives are needed

64、 to lure fans to the stadium. Stadium operators are in a squeeze play between “connected” fans expecting a more captivating experience and host cities looking for higher returns on their sports facility investments. The sports industry is shifting to a new model in which the stadium has become a tec

65、hnological platform as well as a commercial one. As traditional stadiums are transformed into tech-enabled, fully interactive venues that cater for the needs of a new breed of sports fans, we foresaw significant activity in the hardware, software and connectivity area. As well as the emergence of tr

66、aditional tech players applying their know-how and intellectual property to the foundation of the smart platform. We predicted the connected fan to drive connectivity and infrastructure investments in the smart stadium/venue space, as fans demand in-stadium engagement for everything from on-demand i

67、nstant replays to half-time food & beverage delivered directly to their seats.With the rise of the smart stadium comes the opportunity to open it up to third parties, essentially making it a platform. In this new model, the stadium owner is not just the operator of the venue, but the architect and m

68、anager of the platform.TREND OVERVIEWTREND OVERVIEWTHE DRAKE VIEW | 2021 THE DRAKE VIEW | 2021 PREDICTIONPREDICTIONIn the era of global shutdowns where stadiums around the world were closed for several months, as well as due to the high upfront capital costs of investment, we have witnessed a slow t

69、ransition to smart stadiums.Investment in smart stadiums has however regained traction as some teams try to stay ahead of the fan engagement curve, for instance Bundesliga who has invested in a 5G app to deliver real-time camera angles and replays to fans watching live matches inside their stadiums.

70、We expect the rollout of smart ticketing to gain traction across all major sports formats and venues, serving to complete the full smart stadium infrastructure and to solve anonymity and fraud in venues. Moreover, we believe that smart ticketing will be realised relatively quickly with the need of l

71、ess physical touchpoints in venues due to COVID.THE DRAKE VIEW | 2022 THE DRAKE VIEW | 2022 PREDICTIONPREDICTIONSource: SportsProMedia, Drake Star Sports Technology Report Drake Star Securities LLC is regulated by FINRA and is a member of SIPC. All securities in the UK, are transacted through Drake

72、Star UK Limited (FRN 942020) an appointed representative of Kession Capital Ltd (FRN 582160) which is authorised and regulated by the Financial Conduct A#7 SPORTS BETTING IS ON THE RISEAND IS INCREASINGLY IMPORTANT FOR FAN ENGAGEMENT STRATGIES NEW TRENDBetting is increasingly part of fan engagement

73、strategies as a means of gaining and growing the attention of sports viewers. According to Bloomberg, the global sports betting market size is expected to be at $140bn in 2028 with much of the betting popularity, particularly in Europe, sparked by the advent of mobile betting. THE DRAKE VIEW | 2022

74、PREDICTIONTHE DRAKE VIEW | 2022 PREDICTIONSource: Bloomberg, PWC, Zion Market Research, ESPNDrake Star Securities LLC is regulated by FINRA and is a member of SIPC. All securities in the UK, are transacted through Drake Star UK Limited (FRN 942020) an appointed representative of Kession Capital Ltd

75、(FRN 582160) which is authorised and regulated by the Financial Conduct ASPORTS TECH MARKET MAP 122021RIGHTS OWNERSDIGITAL MEDIA PLATFORMS / CONTENTSPORTS OTT CONTENT OWNERSSPORTS SERVICE PROVIDERSFAN ENGAGEMENT CONTENT PROVIDERSFAN ENGAGEMENT SERVICE PROVIDERSB2CB2BDrake Star Securities LLC is regu

76、lated by FINRA and is a member of SIPC. All securities in the UK, are transacted through Drake Star UK Limited (FRN 942020) an appointed representative of Kession Capital Ltd (FRN 582160) which is authorised and regulated by the Financial Conduct ASPORTS TECH MARKET MAP Drake Star Securities LLC is

77、regulated by FINRA and is a member of SIPC. All securities in the UK, are transacted through Drake Star UK Limited (FRN 942020) an appointed representative of Kession Capital Ltd (FRN 582160) which is authorised and regulated by the Financial Conduct Authority.132021VENUE / CRM / ORGANISATIONAL SOFT

78、WARECOMMERCEDATA / ANALYTICSPERFORMANCE ANALYTICSDIGITAL SPORTS AGENCIESSPONSORSHIP MEASUREMENTSWEARABLESESPORTS / FANTASY SPORTSCONSUMER SPORTSB2CB2BMICHAEL HEILWEILPROVEN TRACK RECORD IN THE SPORTS TECH SECTOR14GREGORY BEDROSIANMANAGING PARTNER & CEO | NEW YORK +1 203 524 5652 ERIC WARDPARTNER | LONDON+44 77 4005 MICHAEL METZGERPARTNER | LOS ANGELES+1 310 696 CONTACT THE SPORTS TECH DEAL TEAMANALYSTLINKEDINLINKEDINLINKEDINEDWARD PAGEANALYSTLINKEDINLINKEDINMATHILDE DESCHAMPSANALYSTLINKEDINBELIEVE IN INNOVATIONCHANGE THE WORLD